PERTH, WESTERN AUSTRALIA — (Marketwired) — 10/02/13 — Paladin Energy Ltd (TSX: PDN) (ASX: PDN) („Paladin“ or the „Company“) announces that it has completed a cost rationalisation review and production optimisation analysis for FY14 and FY15, continuing its aggressive focus on constant performance enhancement. Improving operational efficiency is the Company-s priority objective and further gains are expected to be maintained over the next two years continuing on from the 9% and 25% C1 cash cost reductions achieved during the June 2013 quarter compared with the June 2012 quarter for Langer Heinrich and Kayelekera respectively.
Reviewing and implementing far reaching rationalisation and optimisation strategies have now become even more pertinent with the further incremental weakening of the uranium spot price although, in Paladin-s opinion, this price decrease does not detract from the very strong fundamentals of this commodity in the mid to long term.
The detailed cost review encompassed examination of all activities within the Paladin Group, from its mining operations and exploration to corporate/administration overheads, sales and business development areas.
Key Points
FY14 Corporate Overheads and Exploration Cash Cost Reduction
The combined corporate overhead and exploration cash budgets have been cut by $10.8M, achieving an overall reduction in forecast cash costs of 24% for FY14.
FY14 & FY15 Operations – Production Optimisation
FY14 Operations
LANGER HEINRICH MINE
KAYELEKERA MINE
FY15 Operations
Paladin is also continuing to review and optimise management of its existing assets. Efforts to complete the sale of a minority interest in Langer Heinrich to reduce debt have recommenced in a rejuvenated process and the Company will also pursue negotiations for suitable joint venture of its advanced undeveloped projects.
Paladin-s flagship Langer Heinrich operation continues to perform exceptionally well. The reducing unit cost profile of this project going forward as identified above, along with its 20 year mine life and opportunity to expand production when uranium price justifies, makes this project of world class quality demonstrating also the sound capability residing within the Paladin Group to deliver value.
Paladin management and its Board are fully committed to doing everything necessary to fully optimise operations and achieve cost reduction whilst maintaining a readiness to capitalise when the uranium price strengthens.
Contacts: Paladin Energy Ltd John Borshoff Managing Director/CEO +61-8-9381-4366 or Mobile: +61-419-912-571
Paladin Energy Ltd Greg Taylor Investor Relations Contact +1 905 337-7673 or Mobile: +1 416-605-5120 (Toronto)
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